> How does purchasing stock work?

How does purchasing stock work?

Posted at: 2014-12-05 
There are all sorts of employee stock incentives. Stock, options, save as you earn etc. Some are schemes authorosed by tax authorities some are not. With some schemes you are given stock and can buy more. Savings scheme you start saving with a 5 year plan to buy the stock at a set strike price or just take your cash back with interest.

As they are incentive schemes you would expect them to make the employee money. Usually the worst are stock options where the company cannot afford to pay proper salaries in cash and tend to end up under water.

You have to look at each scheme on its merit or risk.

You're speaking of stock options, which are granted to employees as a form of bonus compensation. The amount of shares offered to each employee is limited, so it does not act as a blank check to employees.

To answer the other part of your question - yes, employees can exercise their options (enter a stock position) at any time. What they do with the stock afterwards is solely up to their discretion.

If it were that simple we'd all be rich. The discount you are talking about is probably a discount on the brokerage fee or the discount companies that are sometimes giving are discount on their stock. Investing is long term. Do you know more about Wall Street than they do? You will not get wealthy by playing day trader without knowledge.

There are employees who recieve 15% discount on stock purchases.

Can't they just buy and re sell constantly and make Plenty of money just by doing that? Since you already have 15% on the purchase as soon as you sell it back.

You recieve that free 15% don't you?

Is there rules to how many times you can buy stock. And sell it.

Thanks to everyone in advance.